Millennial Esports has taken a majority stake in French development studio Eden Games.
Pocket Gamer reports the firm spent €9m ($10.5m) on an 82.5% share in the Lyon-based developer, and will have the option to purchase the remaining shares for €2.15m in a year's time.
The current deal is expected to be finished by the end of October.
Eden Games is best known for developing the Test Drive Unlimited and V-Rally series, but has most recently been working on mobile racing title Gear.Club. It is currently working on a Nintendo Switch version.
Acquiring Eden Games not only expands Millennial Esports presence in mobile games, it marks the fourth investment in a European games firm since the start of the year.
Previous deals have included esports event firm O'Gaming, Twitch research group Steam Hatchet and motorsport gaming group Ideas+Cars.
CEO Alex Igelman said: "This acquisition is just the first step in our investment in the platform. The portfolio of games built on their technology platforms will expand very quickly now. That will allow Millennial Esports to take part in the significant growth in Mobile Esports gaming revenue globally."